Stocks vault higher as Nasdaq hits record on economy hopes

Wall Street’s enthusiasm about the reopening economy sent stocks scrambling even higher on Monday, and the Nasdaq composite wiped away the last of its coronavirus-induced losses to set a record.

The broader S&P 500 is now up slightly for the year and back within 4.5 percent of its own record as optimism strengthens that the worst of the recession may have already passed. Stocks that would benefit most from an economy that’s growing again rose the most, including smaller companies, airlines and oil producers.

The S&P 500 rallied 38.46 points, or 1.2 percent, to 3,232.39 and is at its highest level since February, which a panel of economists said on Monday is the month when the recession officially began. That’s when employment set a peak before tumbling after businesses shut down across the country to slow the outbreak.

The Dow Jones Industrial Average rose 461.46, or 1.7 percent, to 27,572.44. The Nasdaq composite, which is more heavily weighted to the big technology stocks that held up the best earlier this year, gained 110.66, or 1.1 percent, to 9,924.74.

Stocks have been rising since late March, at first on relief after the Federal Reserve and Capitol Hill pledged to support the economy and more recently on hopes that the recovery may happen more quickly than forecast.

Those hopes got a huge boost Friday when the U.S. government said that employers added 2.5 million jobs to their payrolls last month. Economists were expecting to see 8 million more lost.

States across the country are slowly relaxing restrictions on businesses meant to slow the spread of the coronavirus outbreak, which is raising expectations that the economy can pull out of its coma.